8-K: Forge Global Reports Q3 2025 Results Amid Mixed Performance

Forge Global Holdings, Inc. released its Q3 2025 supplemental financial information, showing increased losses and cash burn despite growth in custodial assets.

Summary

• Forge Global Holdings, Inc. reported marketplace revenues of $12.16 million for Q3 2025, a decrease from $18.60 million in Q2 2025 but an increase from $8.71 million in Q3 2024.
• Custodial administration fees were $9.10 million in Q3 2025, slightly down from $9.14 million in Q2 2025 and $10.50 million in Q3 2024.
• Total revenues, less transaction-based expenses, for Q3 2025 were $20.97 million, a decline from $27.58 million in Q2 2025 but an increase from $19.14 million in Q3 2024.
• The company recorded an operating loss of $20.55 million in Q3 2025, worsening from an operating loss of $12.84 million in Q2 2025 and comparable to $20.90 million in Q3 2024.
• Net loss attributable to Forge Global Holdings was $18.22 million in Q3 2025, an increase from $12.58 million in Q2 2025 and $18.34 million in Q3 2024.
• Adjusted EBITDA for Q3 2025 was a loss of $11.56 million, a deterioration from a loss of $5.43 million in Q2 2025 and $11.41 million in Q3 2024.
• Net cash used in operating activities significantly increased to $11.35 million in Q3 2025, compared to $7.77 million in Q2 2025 and $5.83 million in Q3 2024.
• Total custodial accounts grew to 2,703,045 in Q3 2025, up from 2,598,846 in Q2 2025 and 2,281,976 in Q3 2024.
• Assets under custody reached $18.4 billion in Q3 2025, an increase from $18.1 billion in Q2 2025 and $16.6 billion in Q3 2024.
• Transaction volume in the marketplace decreased to $0.42 billion in Q3 2025 from $0.76 billion in Q2 2025, but was up from $0.34 billion in Q3 2024.

Sentiment

Score: 3

Explanation: The sentiment is negative due to significant quarter-over-quarter declines in marketplace revenues, total revenues, and a substantial worsening of operating loss, net loss, Adjusted EBITDA, and cash burn from operations. While custody metrics show growth, the core financial performance deterioration is a major concern.

Positives

• Total custodial accounts continued to grow, reaching 2,703,045 in Q3 2025, an increase of 4.0% quarter-over-quarter and 18.4% year-over-year.
• Assets under custody increased to $18.4 billion in Q3 2025, up 1.7% from Q2 2025 and 10.8% from Q3 2024.
• Custodial client cash increased to $454 million in Q3 2025, up from $440 million in Q2 2025.
• Net take rate for the period improved to 2.8% in Q3 2025, up from 2.4% in Q2 2025 and 2.6% in Q3 2024.
• Marketplace revenues for Q3 2025 showed a significant year-over-year increase of 39.6% compared to Q3 2024.

Negatives

• Marketplace revenues decreased by 34.6% quarter-over-quarter, from $18.60 million in Q2 2025 to $12.16 million in Q3 2025.
• Total revenues, less transaction-based expenses, declined by 24.0% quarter-over-quarter, from $27.58 million in Q2 2025 to $20.97 million in Q3 2025.
• Operating loss worsened to $20.55 million in Q3 2025, compared to $12.84 million in Q2 2025.
• Net loss attributable to Forge Global Holdings increased to $18.22 million in Q3 2025, up from $12.58 million in Q2 2025.
• Adjusted EBITDA loss widened to $11.56 million in Q3 2025, from $5.43 million in Q2 2025.
• Net cash used in operating activities increased substantially to $11.35 million in Q3 2025, compared to $7.77 million in Q2 2025 and $5.83 million in Q3 2024, indicating increased cash burn.
• Number of trades in the marketplace decreased to 875 in Q3 2025 from 927 in Q2 2025.
• Transaction volume in the marketplace decreased to $0.42 billion in Q3 2025 from $0.76 billion in Q2 2025.

Risks

• The supplemental information contains forward-looking statements that are subject to risks and uncertainties, which may cause actual results to differ materially from current expectations.
• Investors should carefully consider the risks and uncertainties described in the Company's other SEC filings, including its Periodic Filings, as this document does not detail specific risks.

Future Outlook

The filing contains a standard disclaimer regarding forward-looking statements, noting that the company anticipates subsequent events and developments will cause its assessments to change and disclaims any obligation to update these statements in the future. No specific future outlook or guidance is provided within this document.

Industry Context

The filing provides raw financial and business metrics without qualitative discussion or analysis of broader industry trends or competitive landscape. Therefore, specific industry context cannot be derived solely from this document.

Stakeholder Impact

• Shareholders may experience negative sentiment due to increased losses and cash burn, potentially impacting share price.
• Employees may face uncertainty if financial performance continues to deteriorate, though no specific impact is mentioned.
• Customers of the custody business benefit from continued growth in accounts and assets, indicating ongoing service provision.

Key Dates

Recommendation

While the company experienced significant quarter-over-quarter declines in marketplace revenues and a worsening of losses and cash burn, the custody business continues to show growth in accounts and assets under custody. This mixed performance suggests a 'hold' recommendation for a seasoned investor, awaiting further clarity on the company's strategy to address profitability challenges in its marketplace segment while leveraging growth in its custody solutions. The increase in net take rate is a positive sign, but it's overshadowed by overall revenue and profitability declines.

Keywords

Forge Global Holdings, FRGE, Q3 2025 Earnings, Financial Results, Marketplace Revenues, Custodial Accounts, Assets Under Custody, Adjusted EBITDA, Private Markets, Secondary Market